London, the 25th of April 2009 [TNA]: In his speech during an investor roadshow in London on Thursday and Friday, Mr. Korn told investors from 30 institutions commanding about US$1 trillion that Thailand is now impacted by the global economic slump which has impacted its exports.
Current political unrest in Thailand has deteriorated tourism industry and consumer confidence, he said. However, Thai monetary sector remains strong because non-performing loans of the banking system stays at less than 6 per cent of total assets.
The Thai finance minister said that foreign investors believed that Thailand’s economy should recover faster than many other countries due to its strong economic fundamentals and monetary stability, and that Thailand should become more attractive for investment if the government succeeds in implementing political reforms and economic policy.
Mr. Korn said foreign investors were interested in the Thai government’s plans to invest in mega-projects and inquired regarding funding sources for these projects.
He told them that Thailand preferred to borrow from domestic financial institutions because of their high liquidity — now Bt1.4 trillion — while overseas debts stand at only 12 per cent of the public debt.
Domestic or foreign borrowings are not obstacle to Thai government’s plans on investment, he said.
After the road show in London, Mr. Korn travelled to Washington, DC to attend a World Bank meeting, meet American investors and call on U.S. Treasury Secretary Timothy Geithner to exchange views on ways to tackle economic problems. (TNA)